Financial Literacy Quiz

Allison purchases her college books for the upcoming semester.  She has to pay $98 for a biology book, $38 for a used poetry book, and $74 for a trigonometry book.  If the sales tax rate is 7.5%, how much tax with Allison pay?

• $7.50
• $15.75
• $14.25
• $157.50

Tags

CCSS.7.RP.A.3

Tuition for Bubba Gump University costs $10,000 per year.  Forrest Gump would like to attend, and plans on saving for the next 2 years.  If he already has $4600 saved, what is the minimum amount needed to save per month to cover one year of tuition?

• $2700 per month
• $450 per month
• $225 per month
• $416.67 per month

Interest can be defined as:

• a charge for lending money
• the amount owed for borrowing money
• the amount added into your savings account when opening a bank account
• a charge for convenience of accessing money in your bank

If you are calculating the simple interest and you are given the time in months, how can you find the time in years?

• divide 12 by the months
• divide the months by 12
• multiply 12 times the months
• change the months to a decimal

Tags

CCSS.7.RP.A.3

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

Tags

CCSS.8.EE.C.7B

Principal = $350.
Interest rate = 2.5%
TIme = 3 years.
How much simple interest?

• $7.50
• $26.25
• $87.5
• $262.50

Tags

CCSS.7.RP.A.3

Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $6500 to purchase.  The bank said that she could get a simple interest rate of 8% for 5 years.  What is the total amount that Beyonce will pay for the chair?

• $2600
• $910
• $9100
• $260

Tags

CCSS.7.RP.A.3

The compound interest formula is:
A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.
• The amount of time that has passed.
• The total amount of money after a certain amount of time.
• The amount required to invest.

Tags

CCSS.HSF-IF.C.8B

Davy Crockett earned $10,000 from his raccoon skin hat company.  He deposited it into an account that earned 3% interest, compounded annually.  How much interest did he earn after 4 years?

• $11,255.09
• $1255.09
• $1200
• $11,200

Bilbo Baggins earned $475 from walking long distances last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52
• $831.10
• $839.45
• $846.80